Collective bargaining negotiations have started. The Technology Industries' opening has been expected since the end of the year, but a solution has not yet been reached. The wage increase demands jointly put forward by the wage earners in the autumn have understandably strongly hindered the progress of the negotiations and the achievement of a solution.
As the wage cycle begins, it is good to listen with a sensitive ear to the cyclical situation in construction and reflect on it for the coming years. According to Jouni Vihmo, Chief Economist of the Construction Industry Association (RT), there is no turnaround in construction in sight, and the levels experienced in previous years will not be reached in the coming years. At the labor market table, it is good to understand that the construction crisis is real and construction is dragging on at a historically low level. In this situation, there is little room to pay wages.
Privately financed housing construction shows no signs of recovery and state-subsidized housing production is halving. The economic recovery is very slow. Housing construction is at the level of the 90s recession. The entire boom period has disappeared from construction employment. When people have to worry about keeping their jobs, borrowing for housing is not considered sensible.
According to the chief economist, the recovery in commercial premises will only accelerate when the international real estate market picks up and investors return to Finland. The investor equation is still broken and it will take several years to return to higher prices. The price level makes projects unprofitable. The fragility of the economy does not yet allow for a turnaround in construction. Building permits and key indicators of the Finnish economy are still largely frozen.
The delay in the main opening may predict a long spring of negotiations. However, the goal when starting negotiations must be to reach a solution within the set deadlines. Only a reasonable outcome can help an industry struggling in the economic downturn. Only financially sound companies can provide jobs and thus also contribute to restoring consumer confidence and the ability to make investments in their own economy.
The negotiated solution that is reached in time will be directly reflected in the company's cost structure. If ever, then now is the time to ensure the operational capacity of companies in the labor market round. Excessive increases in cost levels will certainly weaken the construction industry's recovery from the economic downturn. Based on company feedback, the prolonged workforce adjustment solutions are unparalleled in history.
Instead of a salary solution that undermines companies' ability to employ, negotiations must seek more flexible ways of organizing work. Young people considering their field of study will certainly pay attention to the opportunities each field offers in this regard, in addition to salaries.
Best regards,
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